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Taxation Quiz

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

What is the main function of taxation?

a)

To fund government expenditures

b)

To control population growth

c)

To provide social welfare

d)

To promote economic growth

2.

Which type of tax is imposed on the profit of a business?

a)

Property tax

b)

Capital gains tax

c)

Corporate tax

d)

Income tax

3.

What does a capital gains tax apply to?

a)

Rental income

b)

Profit from asset sales

c)

Profit from business operations

d)

Salary income

4.

Who pays a property tax?

a)

Tenants

b)

Real estate agents

c)

Property owners

d)

Local government employees

5.

What is inheritance tax levied on?

a)

Income from investments

b)

Inherited estate

c)

Profit from business operations

d)

Salary income

6.

What does a sales tax apply to?

a)

Goods and services sold by the government

b)

Exports only

c)

Goods and services sold by private businesses

d)

Imported goods only

7.

What type of tax is a value-added tax (VAT)?

a)

Sales tax

b)

Income tax

c)

Property tax

d)

Corporate tax

8.

What is the classification of a tax that taxes people with a higher income at a higher percentage rate?

a)

Regressive tax

b)

Progressive tax

c)

Proportional tax

d)

Flat tax

9.

Which tax classification taxes people with a lower income at a higher rate relative to their income?

a)

Progressive tax

b)

Regressive tax

c)

Proportional tax

d)

Flat tax

10.

What does a proportional tax do?

a)

Taxes only imported goods

b)

Taxes people with lower income at a higher rate

c)

Taxes people with higher income at a higher rate

d)

Taxes all income groups at the same percentage

11.

What does a regressive tax do?

a)

Taxes people with lower income at a higher rate

b)

Taxes people with a lower income at a higher rate relative to their income

c)

Taxes all income groups at the same percentage

d)

Taxes people with higher income at a higher rate

12.

What is the purpose of property tax?

a)

To control population growth

b)

To promote economic growth

c)

To tax property and land values

d)

To fund government expenditures

13.

What is the purpose of sales tax?

a)

To tax the sale of goods and services

b)

To control population growth

c)

To promote economic growth

d)

To fund government expenditures